FUNDAMENTALS
* Spot gold was up 0.1% at $3,377.79 an ounce, as of 0007 GMT. U.S. gold futures also climbed 0.1% to $3,401.20.
* The ADP National Employment Report showed that U.S. private employers added in May the fewest number of workers in more than two years, with investors awaiting Friday’s nonfarm payrolls report for further clues on the labor market.
* The U.S. services sector contracted in May for the first time in nearly a year, as businesses faced higher input costs amid growing fears of stagflation.
* Gold gained support after the Federal Reserve reported a slowdown in U.S. economic activity, citing rising costs and prices driven by increased tariff rates since the last policy meeting. * Bullion found additional momentum after U.S. President Donald Trump urged Fed Chair Jerome Powell on Wednesday to cut interest rates, pointing to slower job growth highlighted in the latest ADP employment report. * Trump’s doubling of tariffs on steel and aluminum imports took effect, with his administration seeking “best offers” from trade partners to avoid further levies slated for July.
* Trump described Chinese President Xi Jinping as “extremely hard to make a deal with,” highlighting tensions ahead of a long-awaited call between the two leaders this week. * Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
* Elsewhere, spot silver gained 1.3% to $34.50 an ounce, platinum rose 0.6% to $1,090.81 and palladium shed 0.2% to $998.70. DATA/EVENTS (GMT) 0145 China Caixin Services PMI May 0600 Germany Industrial Orders MM April 0600 Germany Manufacturing O/P Cur Price, Consumer Goods SA April 0830 US S&P Global PMI: MSC Composite – Output May 1215 EU ECB Refinancing, Deposit Rate June 1230 US International Trade $ April 1230 US Initial Jobless Claim 31 May, w/e 1430 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 30 May.
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